Casino Choice UK News Archive
Ladbrokes and 888 in takeover talks
888 Holdings plc has suffered in the post-Unlawful Internet Gambling Enforcement Act (UIGEA) market as it has had to pull out of the US altogether. The UIGEA has caused major changes in the online gambling market, with billions of dollars wiped off the share prices of companies such as 888 Holdings and PartyGaming as it became clear they would be leaving the US market, from where an estimated 70 percent of the revenue was derived.
The non-US gambling firms are now looking to consolidate, and Ladbrokes would greatly strengthen its online business with the acquisition of 888 Holding’s. Talks between the two companies are believed to have been brokered by 888’s outgoing CEO John Anderson, who is also an ex-Ladbrokes director.
888 Holding’s has a market value of £375 million at the current market price but for Ladbrokes’ bid to be successful they must persuade the Shaked brothers, who founded the company and maintain a 51 percent controlling share in 888 Holdings, to agree to the sale. There are rumours that it could cost as much as £470 million to persuade the brothers to sell.
The non-US gambling firms are now looking to consolidate, and Ladbrokes would greatly strengthen its online business with the acquisition of 888 Holding’s. Talks between the two companies are believed to have been brokered by 888’s outgoing CEO John Anderson, who is also an ex-Ladbrokes director.
888 Holding’s has a market value of £375 million at the current market price but for Ladbrokes’ bid to be successful they must persuade the Shaked brothers, who founded the company and maintain a 51 percent controlling share in 888 Holdings, to agree to the sale. There are rumours that it could cost as much as £470 million to persuade the brothers to sell.
Submitted: 2006/11/06 at 12:50:52
